Tag: new auto insurance

If you like good food, you know it can be expensive. So saving money is important. One awesome way I saved money today was by switching my car insurance companies. I probably just saved $300+ dollars this year on car insurance in about 20 minutes.

Here’s what I found interesting, even if a friend of mine and I had bought identical brand new cars on the same day after paying exactly the same price, how much we pay for insurance could vary as much as 50%+.

I talked to my agent and here’s what he said:

Type of policy – There are many different types of policies and the policies taken by the two of us may be vastly different from each other.

State where we live – Different states have different rules pertaining to car insurance because of which, there may be a huge difference in insurance premium.

Driving records – Due to a variation in the driving records, there may be a component of ‘No Claim Bonus’ or incentive in one case.

Coverage – The coverage which one of us might have opted for may be significantly different from the other.

Security devices – Having security devices in the car helps in lowering the premium payable for insurance.

Attending defensive driving courses – If one of us had attended the prescribed defensive driving courses, we may have to had pay a smaller premium.

Age and sex of the driver – Age and sex of the driver may also have a bearing on the premium amount as some companies offer discounts to female drivers.